This month we've been having a good look through BIBA"s helpful guide on the Insurance Act 2015.
Having read it cover to cover, here are our top five highlights (in no particular order!):
- Requirement to disclose material information remains and the remedies available to an insurer in the event of non-disclosure are amended. The graphic on page seven of the report usefully demonstrates how this will operate
- If the non-disclosure (breach) was deliberate or reckless then the option to avoid the contract and keep the premium remains
- If the breach was not deliberate or reckless there are still a number of options available, including avoidance through reductions in any claims payments to the retrospective application of terms
- ‘Basis of contract’ clauses are rendered obsolete for business insurance (they are already obsolete for consumer contracts)" as these are deemed to act as a warranty
- Insured parties will need to comply with the new duty of fair presentation at every renewal. Page 14 has a useful list of things this might include.
You can download the full guide here